Business Briefing / Banks

Goldman, ICBC reach agreement

Goldman Sachs Group Inc. and Industrial & Commercial Bank of China said they had created a lock-up agreement that prevents Goldman from selling much of its stake in the Chinese bank until next year.

Goldman, which owns 4.9% of ICBC's outstanding shares, has agreed to hold on to 80% of that stake until at least April 28, 2010. Goldman will be able to sell the remaining stake any time after April 28 of this year.

There had been speculation that Goldman would sell off a portion of its investment in ICBC to raise additional cash amid the ongoing credit crisis and to potentially repay a government investment.